Vinod Bhat
In a significant development, the government has approved the upgradation of the Indian Railway Catering and Tourism Corporation (IRCTC) and the Indian Railway Finance Corporation (IRFC) to Navratna status. With this designation, IRCTC is now the 25th Navratna company, while IRFC is the 26th among Central Public Sector Enterprises (CPSEs). Union Minister of Railways Ashwini Vaishnaw congratulated the teams at IRCTC and IRFC on their achievement.
Minister Vaishnaw expressed his satisfaction, stating, “We are happy to announce that all seven listed PSUs of Railways now hold Navratna status, a milestone reached after 2014.” The timeline for previous Navratna status awards includes CONCOR in July 2014, RVNL in May 2023, IRCON and RITES in October 2023, and Railtel in August 2024, culminating with the recent recognition for IRCTC and IRFC. Vaishnaw highlighted this accomplishment as a testament to the focused attention of Hon’ble Prime Minister Shri Narendra Modi on transforming Indian Railways. He also extended his gratitude to the Hon’ble Finance Minister on this occasion.
IRCTC: A Celebration of Excellence
IRCTC operates under the Ministry of Railways and reported an annual turnover of ₹4,270.18 crore, with a profit after tax (PAT) of ₹1,111.26 crore and a net worth of ₹3,229.97 crore for FY 2023-24. The Navratna recognition comes as IRCTC prepares to celebrate 25 years of excellence in catering, tourism, and online ticketing services in 2025, reflecting the corporation’s commitment to operational excellence in the hospitality and tourism sector over the years. The upgraded status will enable IRCTC to expand its footprint and enhance service offerings within the travel, tourism, and hospitality industries.
IRFC: Supporting Railway Infrastructure
The Indian Railway Finance Corporation (IRFC), a vital financial institution under the Ministry of Railways, has also been awarded the prestigious Navratna status by the Government of India. This recognition represents a significant milestone in IRFC’s journey as a supportive entity for India’s railway infrastructure. Established on December 12, 1986, and wholly owned by the government, IRFC has played a crucial role in financing the expansion and modernization of Indian Railways. With revenues exceeding ₹26,600 crore and a PAT of above ₹6,400 crore as of March 31, 2024, IRFC has become the third-largest government Non-Banking Financial Company (NBFC) in India.
Benefits of Navratna Status
Navratna PSUs enjoy several advantages, including:
- Financial Autonomy: They can form joint ventures, subsidiaries, and engage in mergers or acquisitions without requiring direct government intervention.
- Operational Freedom: They have the authority to make independent business and investment decisions, allowing them to compete more effectively with private sector companies. They also benefit from greater flexibility in HR management, including the ability to hire professionals at market-driven salaries.
- Global Expansion: Navratna companies can explore international markets, establish strategic alliances, and expand globally without stringent bureaucratic constraints.
- Improved Market Position: Being recognized as financially stable, Navratna companies attract greater investor confidence, enabling them to generate better returns for their shareholders.
The achievement of Navratna status undoubtedly enhances the potential of both IRCTC and IRFC, paving the way for increased growth and innovation within India’s railway sector.
